In a move that could reshape the critical minerals landscape, US businessman James Cameron has offered to acquire Eurasian Resources Group (ERG), a major Luxembourg-based mining conglomerate, for a staggering $5 billion.

ERG, with significant operations in Kazakhstan and Africa, is a key producer of copper, cobalt, aluminium, and iron ore. Notably, the Kazakh government holds a 40% stake in the company. The offer from Cameron comes at a time when ERG is poised to play a crucial role in Kazakhstan's ambitious plans to expand its rare earth output by 40% by 2028.

Cameron, who previously served as chairman of the former FTSE 250 mining firm Petropavlovsk, has enlisted Goldman Sachs for preliminary advice on the potential deal. His financing plan involves a combination of his personal funds and equity contributions from investors in the United States, Australia, and the Middle East.

The timing of this offer is significant, aligning with the United States' increasing focus on securing alternative supply chains for critical minerals outside of China. Escalating trade tensions between the US and China have underscored the vulnerability of relying heavily on a single source for these essential materials, which are vital for various high-tech industries, including electronics, renewable energy, and defense.

Kazakhstan has recently emerged as a potentially major player in the rare earth sector. Earlier this month, the government announced the discovery of a substantial rare earth deposit estimated to exceed 20 million metric tons. If these estimates are confirmed, Kazakhstan could rank among the world's top three countries in terms of rare earth reserves, following China and Brazil. This discovery has further amplified the importance of ERG, which had already formed a task force to explore and develop these deposits.

Historically, ERG was a significant global producer of gallium, a rare metal crucial for microchips, accounting for one-fifth of global production until 2012 when increased Chinese output led to the cessation of its production. Interestingly, China recently imposed a ban on gallium exports to the US in December 2023, further emphasizing the need for diversified supply sources.

ERG underwent a significant ownership change in 2013 when it was taken private in a $4.5 billion buyout by its three founders and the Kazakh government. Each of the founders held approximately a 20% stake. However, recent developments include the passing of one of the founders and board chairman, Alexander Mashkevich, in March 2025, leaving Patokh Chodiev as the sole remaining original founder among the current shareholders.